Southwest Airlines Revamps Credit Card Program with New Perks and Higher Fees
Southwest Airlines is overhauling its credit card portfolio, introducing a suite of new benefits designed to align with its evolving business model. This significant refresh includes enhanced earning opportunities on everyday purchases and improved seating benefits, but comes with a notable increase in annual fees across all its Chase co-branded cards. The changes aim to provide greater value and flexibility for cardholders, reflecting the airline’s recent adjustments to its loyalty program and operational procedures.
Key Takeaways
- Annual fees for all five Southwest co-branded credit cards are increasing, with hikes averaging around 50%.
- New benefits include bonus points on restaurant, grocery, and gas purchases, and complimentary access to extra legroom seats for select cardholders.
- Perks tied to the airline’s former open seating model, such as EarlyBird Check-in and Upgraded Boarding, are being phased out.
- A limited-time welcome offer provides 100,000 Rapid Rewards points for new personal card applicants.
Increased Annual Fees
Southwest’s credit card lineup will see a significant rise in annual fees. The Southwest Rapid Rewards® Plus Credit Card will increase from $69 to $99, the Premier Card from $99 to $149, and the Priority Card from $149 to $229. Business cards will also see increases, with the Premier Business Card going from $99 to $149 and the Performance Business Card from $199 to $299. These adjustments, attributed by Chase to new benefits and the passage of time, are the first fee increases for some cards in a decade.
New and Enhanced Benefits
The revamped cards offer several new advantages. All cardholders will continue to receive their first checked bag free for themselves and up to eight companions on the same reservation. A significant change is the introduction of new bonus spending categories, shifting from local transportation and communication services to dining, grocery, and gas purchases. The Priority and Performance Business cardholders will gain complimentary access to extra legroom seats within 48 hours of departure, subject to availability. Additionally, all cardholders will benefit from earlier boarding, with access no later than Group 5, and a faster track to A-List elite status through increased Tier Qualifying Points earned on card spending.
Disappearing Perks
As Southwest transitions away from its open seating and single-file boarding processes, certain card benefits are being discontinued. These include the EarlyBird Check-in and Upgraded Boarding perks that were previously associated with some cards. Existing cardholders will have until the end of 2025 to utilize these benefits.
Welcome Offer
For a limited time, new applicants for any of Southwest’s personal credit cards can earn a substantial welcome bonus of 100,000 Rapid Rewards points after spending $4,000 on purchases within the first five months. This offer provides a significant boost for travelers looking to maximize their rewards.
Summary of Changes
The overhaul introduces a tiered system for seating benefits, with higher-tier cards offering earlier access to preferred and extra legroom seats. Earning rates have been adjusted, with new bonus categories focusing on everyday spending like groceries and dining. While annual fees are higher, the airline aims to compensate with valuable new perks and a compelling welcome bonus, positioning the cards to offer increased utility and flexibility for loyal Southwest customers.
